If large enough, a shock could push the United States into a recession, but it would likely be short and shallow with a modest rise in unemployment, says the International Monetary Fund.
If large enough, a shock could push the United States into a recession, but it would likely be short and shallow with a modest rise in unemployment, says the International Monetary Fund
US inflation by the Fed’s preferred measure is running at more than three times the US central bank’s 2% target.In the face-to-face talks, the allies will take stock of the effectiveness of sanctions imposed so far against Vladimir Putin's Russia, consider possible new military and financial aid for Ukraine, and begin turning their eye to longer-term reconstruction plans.The Biden administration has vowed to commit more resources to the Indo-Pacific as China seeks to boost economic, military and police links with Pacific island nations hungry for foreign investment.But any temporary pain caused by a recession would be "a necessary price to pay" to defeat damaging inflation, she said.
Georgieva said the responsibility to restore low and stable inflation rests with the Fed, and that the fund views the US central bank’s desire to quickly bring its benchmark overnight interest rate up to the 3.5%-4% level as “the correct policy to bring down inflation.Ahead of the summit of G7 most industrialized nations which will be hosted from Sunday at the Bavarian mountain resort of Elmau Castle, German Chancellor Olaf Scholz warned that allies would need stamina in shoring up Ukraine.” The Fed’s current policy rate ranges from 1.We are also united in how we realize this vision — according to principles of Pacific regionalism, sovereignty, transparency, accountability, and most of all, led and guided by the Pacific Islands," the White House said.50% to 1."It is therefore all the more important that we stay firmly on course -- with our sanctions, with internationally coordinated arms deliveries, with our financial support for Ukraine.75%.While the IMF is confident the Fed's rate hikes will bring down inflation, "We are conscious that there is a narrowing path to avoiding a recession," she said in a statement.
“We believe this policy path should create an upfront tightening of financial conditions which will quickly bring inflation back to target.After the G7 summit closes on Tuesday, the leaders will head to a gathering of NATO powers in Madrid." —Reuters.We also support the Fed’s decision to reduce its balance sheet,” she said.While Congress’ failure to pass US President Joe Biden’s climate and spending proposals was a “missed opportunity,” Georgieva signaled that the IMF would support a scaled-down version.'Increase pressure' Western allies have supplied Ukraine with billions in financial aid and armaments, with the US leading the charge with $5.“We think the administration should continue making the case for changes to tax, spending, and immigration policy that would help create jobs, increase supply, and support the poor,” she said.Georgieva also said the IMF sees clear benefits to rolling back the US import tariffs imposed over the last five years, which include punitive duties on Chinese imports and global tariffs on steel, aluminum, washing machines, and solar panels.But as the war drags into its fifth month, Ukraine has repeatedly warned that it needs far more support to withstand the grinding Russian assault.The IMF chief said the battle against inflation must be the "top priority" despite the impact a US slowdown might have on the global economy.
US Treasury spokesperson Michael Kikukawa said the IMF statement shows the US economy was confronting global challenges “from a position of strength” due to the Biden administration’s economic policies.The Treasury also said Yellen, in her meeting with Georgieva, reiterated the importance of the IMF conducting “frank and thorough assessments” of IMF member economies.Washington said leaders at the G7 plan to "roll out a concrete set of proposals to increase pressure on Russia.– Rappler.com.Instead, it has exposed the Achilles heel of energy reliance that continues to crimp the ability of major players like Germany or Italy to go all out in punishing Moscow.
World leaders seek united front for Ukraine as war rages onWorld leaders including US President Joe Biden will seek to close ranks at back-to-back summits from Sunday on offering emphatic support to help Ukraine repel Russian invaders as the relentless war puts international unity to the test.
US, Japan, Australia, New Zealand and United Kingdom form Pacific groupThe United States, Australia, Japan, New Zealand and the United Kingdom launched an informal group aimed at boosting economic and diplomatic ties with Pacific island nations, the White House said on Friday. United Kingdom from Atlantic: Oh..., thank you. It's mighty white of you all. US and UK are not in the Pacific. Why are they included, while so many countries in the Pacific are not included. Is this another ploy of the US to dominate the Pacific?
US recession would be 'necessary price' to defeat inflation, says IMF chiefWith inflation rising sharply, and the Federal Reserve raising interest rates, the United States is facing an increased risk of a downturn, IMF Managing Director Kristalina Georgieva said Friday.
US recession fears darken outlook for global growth - BusinessWorld OnlineWASHINGTON/LONDON/TOKYO — Manufacturing growth is slowing worldwide as China’s coronavirus disease 2019 (COVID-19) curbs and Russia’s invasion of Ukraine disrupt supply chains and keep inflation at the highest in years, while the growing risk of a US recession poses a new threat to the global economy. Gauges of factory activity released Thursday in Japan, Britain, […]
Oil price hike seen anewPRICES of diesel are seen to increase again to “a little over P1” next week due to the current performance of the Philippine peso against the US dollar.Department of Energy Oil...
Killing as policy: Duterte's drug war that Marcos will inheritPresident Rodrigo Duterte has made an enemy out of drug users and waged a war that smudged gutters, roads, and narrow alleys all over the Philippines with blood. More in this in-depth by Jodesz Gavilan and Jairo Bolledo: They got the blood on the lower class but not in the upper class. The ongoing onslaught will never end. Unless…